Asset Misappropriation Subcategories

With nearly 90% of occupational frauds involving some form of asset misappropriation,
the report further examined the methods employees used to embezzle organizational assets.
ACFE grouped asset misappropriation schemes into nine subcategories.

Category Description Examples Cases Percentage Median

Reported of All Cases1 Loss

SCHEMES INVOLVING THEFT OF CASH RECEIPTS

Skimming Any scheme in • Employee 267 14.5% $60,000

which cash is accepts
stolen from an payment
organization from a
before it is customer,
recorded on the but does not
organization’s record the
books and sale, and
records instead
pockets the
money
Cash Larceny Any scheme in • Employee 181 9.8% $100,000
which cash is steals cash
stolen from an and checks
organization from daily
after it has been receipts
recorded on the before they
organization’s can be
books and deposited in
records the bank

SCHEMES INVOLVING FRAUDULENT DISBURSEMENTS OF CASH

Billing Any scheme in • Employee 479 26.0% $128,000

which a person creates a
causes his or shell
her employer to company
issue a payment and bills
by submitting employer for
invoices for services not

                                                                                                                         
1
 The  sum  of  percentages  in  this  table  exceeds  100%  because  several  cases  involved  asset  misappropriation  
schemes  from  more  than  one  category.  
 fictitious goods actually
or services, rendered
inflated • Employee
invoices or purchases
invoices for personal
personal items and
purchases submits
invoice to
employer for
payment
Expense Any scheme in • Employee 278 15.1% $33,000
Reimbursements which an files
employee fraudulent
makes a claim expense
for report,
reimbursement claiming
of fictitious or personal
inflated travel,
business nonexistent
expenses meals, etc.

Check Tampering Any scheme in • Employee 247 13.4% $131,000

which a person steals blank
steals his or her company
employer’s checks,
funds by makes them
intercepting, out to
forging or himself or
altering a check herself or an
drawn on one accomplice
of the • Employee
organization’s steals
bank accounts outgoing
check to a
vendor,
deposits it
into his or
her own
bank account
Payroll Any scheme in • Employee 157 8.5% $72,000
which an claims
employee overtime for
causes his or hours not
her employer to worked
issue a payment • Employee
by making false adds ghost
claims for employees to
 compensation the payroll

Cash Register Any scheme in • Employee 55 3.0% $23,000

Disbursements which an fraudulently
employee voids a sale
makes false on his or her
entries on a cash register
cash register to and steals
conceal the the cash
fraudulent
removal of cash

OTHER ASSET MISAPPROPRIATION SCHEMES

Cash on Hand Any scheme in • Employee 121 12.6% $35,000

Misappropriations which the steals cash
perpetrator from a
misappropriates company
cash kept on vault
hand at the
victim
organization’s
premises

Noncash Any scheme in • Employee 156 16.3% $100,000

Misappropriations which an steals
employee steals inventory
or misuses from a
noncash assets warehouse
of the victim or storeroom
organization • Employee
steals or
misuses
confidential
customer
financial
information